May 31, 2025 – Mr. Phiphat Ratchakitprakarn, Minister of Labour, shared a media briefing following his response to questions during the House of Representatives budget deliberation on the 2026 Fiscal Year Budget Bill, affirming that he addressed all concerns raised by the opposition with clarity and precision.
Mr. Phiphat stated that the increased 2026 Fiscal Year budget allocation for the Ministry of Labour will support key programs under the Department of Skill Development, including procurement of computer and AI systems. These investments are crucial for developing updated training curricula in IT and AI, replacing outdated equipment to align with evolving labour market demands. He added that traditional skill development models no longer match industry needs. In response, the Ministry is enhancing workforce capabilities through collaboration between the Department of Skill Development, educational institutions, and private enterprises by upskilling and reskilling with modern skills. Notable partnerships include training programs with Microsoft for AI-related skills, as well as modules in semiconductors, electrical and electronic technologies, and digital competencies. The Ministry is also working with vocational and higher education institutions to prepare students entering the workforce, implementing credit transfer systems via the Credit Bank, and encouraging businesses to train their employees for tax incentives, benefiting over 4.4 million workers. Upskilling is also extended to freelance workers, with mechanisms in place to track whether trainees are applying their new skills in employment.
The skills development initiatives are not only limited to domestic workers. The Ministry is also preparing Thai workers for overseas markets, conducting surveys in host countries to determine workforce needs. Thai overseas workers generate over 250 billion Baht in annual remittances, contributing significantly to national economic growth.
Regarding the minimum wage increase, Mr. Phiphat emphasized that adjustments must be carefully timed as the economy is still recovering. A nationwide wage hike is currently not feasible. Instead, starting January 1, 2025, the minimum wage was raised to 400 Baht in four provinces and one district: Phuket, Chonburi, Rayong, Chachoengsao, and Koh Samui, Surat Thani, areas with high production potential and thriving tourism economies. 1,716,276 workers in these regions have already benefited. These are areas that the Wage Committee has considered to be high potential in terms of production base and an economic city in terms of tourism. Over 80 percent of workers in the area earn over 400 Baht. In the next phase, there will be an analysis of the impact and a review of the adjustment of the minimum wage of 400 Baht to cover other areas.
Mr. Phiphat spoke about workplace safety and a rise in labour-related accidents and injuries. He has directed the Thai Institute of Occupational Safety and Health (TOSH) to strengthen preventive measures. TOSH has expanded training and safety promotion to include informal workers, such as delivery riders, migrant workers, and Thai workers bound for overseas jobs. Since 2024, rider safety handbooks and training sessions have been developed, informed by research highlighting increasing accident rates in this group. Additionally, a special task force has been established to oversee worker safety in serious incidents. This team conducts field inspections at large-scale construction sites to ensure proper safety protocols are followed.
Mr. Phiphat also spoke about Phase 3 of the Employment Promotion Loan Scheme, launched by the Social Security Office (SSO) in partnership with six banks: UOB, Bangkok Bank, Krungthai Bank, EXIM Thailand, Thai Credit Bank, and the Bank for Agriculture and Agricultural Cooperatives (BAAC), with the agreement signed on May 29. This scheme aims to provide low-interest funding to employers to help sustain employment within the social security system, stimulate grassroots economic circulation, and support businesses of all sizes nationwide. The program’s total budget is 30 billion Baht, consisting of 20 billion Baht from the Social Security Fund and 10 billion Baht from central government funds. Eligible businesses must have contributed to the fund for at least 12 consecutive months and commit to maintaining at least 80 percent of employment during the loan term. The maximum loan amounts per business depend on size: up to 15 million Baht for companies with less than 200 employees, up to 30 million Baht for 201–500 employees, and up to 50 million Baht for over 500 employees. The fixed interest rate is capped at 2.35 percent per year for the first 3 years, and for businesses without collateral or using guarantors, the rate will not exceed 4.75 percent per year. This phase of the program will offer broader support nationwide, serving as a vital policy instrument to mitigate labour impacts during this period of economic transition.
